Borrow From Your 401(k)

The law allows you to borrow up to $50,000, or half your vested balance, whichever is less, from your 401(k). Employers don't have to allow loans, but most big firms do. The upside: You don't owe taxes or penalties and repay the money to yourself. The downside: If you leave your job, your ex-employer will likely demand quick repayment and, if you can't, will treat the balance as an early distribution, subject to interest and penalties.